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Lehman July 17
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Richard Fuld Net Worth: Former Lehman CEO Auctions off Idaho Estate
Jul 16, 2015 | Realty Today
The massive Sun Valley estate of former CEO of Lehman Brothers, Richard Fuld, will be up on the auction block on August 19, reports CNN.Money. The last chairman of the bankrupt investment firm previously listed the 71-acre property at $59.5 million. Estimates of Concierge Auctions, which specializes in luxury property auctions... -
Former Lehman Brothers CEO to Auction Off Sun Valley Estate
Jul 16, 2015 | KMVT 11
By DeSiree Fawn
An estate along the Big Wood River in Ketchum is going up for auction in August. The estate spans across 71 acres between the Big Wood River and Bald Mountain. Concierge Auctions in New York, who is organizing the sale, says the property’s estimated value is nearly $60... -
A Balance Sheet Quirk At Bank Of America
Jul 16, 2015 | Seeking Alpha
By Xinyun Hang
...Repo 105 was an accounting technique used by Lehman Brothers to hide how much money it borrowed. The company would use assets as collateral for short term loans. It then used the loans to pay off other debts. The company got $100 in loans per $105 in collateral, hence the name "Repo 105."...
Client Attorney Privileged/Attorney Work Product/At Request of Counsel
Sun Valley
Repo 105
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Richard Fuld Net Worth: Former Lehman CEO Auctions off Idaho Estate
Jul 16, 2015 | Realty Today
The massive Sun Valley estate of former CEO of Lehman Brothers, Richard Fuld, will be up on the auction block on August 19, reports CNN.Money.
The last chairman of the bankrupt investment firm previously listed the 71-acre property at $59.5 million. Estimates of Concierge Auctions, which specializes in luxury property auctions, put the sale of the Big Wood River Estate between $30 million and $50 million.
The estate features three separate timber and rock residential structures: the 9200-square-foot main house that has five bedrooms with American Chestnut floors, cedar-plank ceilings, a stone fireplace and floor-to-ceiling windows on the family room; the guesthouse that has 3 bedrooms with en-suite bathrooms, a kitchen, a two-car garage and a wraparound porch; and the gate house. It collectively has eleven bedrooms and ten and a half bathrooms. The property is bordered by the Big Wood River on one side and the world-famous Bald Mountain on the other. There are nine new lots where other structures can be built.
A Zillow report said that according to Laura Brady, president of Concierge Auctions, the 2100 ft riverside property is expected to fetch a handsome price. "You're standing there, and the side of the mountain is sheer on the other side of you. You're looking straight up at this big ski mountain - but the public slopes are on the other side of it." Brady continued that auctions like this take place for several reasons...
For full story:
www.realtytoday.com/articles/20751/20150716/richard-fuld-net-worth-former-lehman-ceo-auctions-idaho-estate.htm
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Former Lehman Brothers CEO to Auction Off Sun Valley Estate
Jul 16, 2015 | KMVT 11
By DeSiree Fawn
An estate along the Big Wood River in Ketchum is going up for auction in August.
The estate spans across 71 acres between the Big Wood River and Bald Mountain.
Concierge Auctions in New York, who is organizing the sale, says the property’s estimated value is nearly $60 million and auction bidding could run between $30 and $50 million.
Laura Brady, the president of Concierge Auctions, says what makes the property so valuable is privacy, proximity to town, and acreage. "The auction process works really well, similar to selling fine art or antiquities or pocket cars, where you have an asset...
For full story:
http://www.kmvt.com/content/news/Former-Lehman-Brothers-CEO-To-Auction-Off-Sun-Valley-Estate-316068911.html
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A Balance Sheet Quirk At Bank Of America
Jul 16, 2015 | Seeking Alpha
By Xinyun Hang
Introduction: Repo 105 and Lehman BrothersRepo 105 was an accounting technique used by Lehman Brothers to hide how much money it borrowed. The company would use assets as collateral for short term loans. It then used the loans to pay off other debts. The company got $100 in loans per $105 in collateral, hence the name "Repo 105."
What was unique about Repo 105 was that it let Lehman look safer than it actually was. For the duration of the loans, the company could say it had sold the assets used as collateral. It could do so even though it had to buy them back at the end of the loan just a few days later, generally with newly borrowed money. For those few days, though, the company could temporarily "park" the assets on another company's balance sheet-for a fee, of course.
Lehman used Repo 105 to look make its balance sheet look more attractive in its filings to the Securities and Exchange Commission, or SEC. Right before making its filings, the company would use Repo 105 to pretend that it had sold assets and reduced debt. This reduced Lehman's leverage ratio (the ratio of its assets to its equity), as calculated from the company's SEC filings. Because the leverage ratio is a key measure of a bank's safety, this made the company look safer than it actually was.
Unsurprisingly, Lehman became more aggressive in using Repo 105 as it ran into trouble in 2007 and 2008. According to a 2010 Financial Times article by Tracy Alloway, the bank "even [breached] its own internal cap on the Repo's use (about $22bn as of summer 2006)." The definitive report on Lehman's failure was published in 2010 by the company's bankruptcy examiner, Anton Valukas. According to the Valukas report, "Lehman temporarily reduced its net balance sheet at quarter‐end through its Repo 105 practice by approximately $38.6 billion in fourth quarter 2007, $49.1 billion in first quarter 2008, and $50.38 billion in second quarter 2008."
Lehman Brothers' use of Repo 105 was important enough that Valukas devoted an entire volume of his nine volume report to it. As the Valukas report puts it, Repo 105 "[created] a materially misleading picture of the firm's financial condition in late 2007 and 2008."John Hempton Reveals Repo 105 Type Transactions At Bank of America
When the Valukas report came out in 2010, John Hempton wrote about it on his blog, Bronte Capital. Hempton, an Australian hedge fund manager and one of my favorite bloggers, wrote a March 2010 blog post titled "Repo 105's antecedents: Ken Lewis." In the post, he noted that "Repo 105 type balance sheet faking was 'an old trick' and well known to anyone who cared to read balance sheets (very) carefully."...
For full story:
http://seekingalpha.com/article/3331585-a-balance-sheet-quirk-at-bank-of-america
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Sun Valley
Repo 105
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